About us

Westermo finished the year strongly with its best order intake in a single quarter to date, and had a record order book at year-end. Otherwise, the market featured restraint and deferred investments, especially on large-scale projects. Overall, this meant that full-year order intake was comparable to the previous year, which is
lower than expected.

Network solutions for industrial data communication

Westermo delivers industrial data communication products, targeting the market for infrastructure and various manufacturing sectors. These networks are critical to customers’ operating activities. The solutions are often installed in exposed, harsh environments, with electrical disruptions, dust, vibration and wide temperature fluctuations. This implies very stringent standards for environmental endurance, safety and reliability. Westermo’s network solutions are robust and specifically developed to satisfy customer needs for mission-critical systems. Various research reports estimate the global market value of industrial network products at 13-17 SEK billion. Investment cycles vary, with lower growth in some years including 2016, although in the long term, the market has achieved yearly growth of over 10%.

Sales channels

Westermo markets and sells network products through a variety of channels. Its in-house sales resources consist of offices with sales teams in 13 countries. The sales offices service end-customers directly, and system integrators. Sales are also through OEM customers, which embed these products in their own solutions. Westermo’s sales resources are supplemented by a network of distributors on selected markets. Westermo’s in-house sales resources generated most, or over 70%, of sales in 2016.

Market segments

The offering addresses the market for infrastructure, such as transportation systems, energy systems and water supply, spanning a range of manufacturing sectors such as marine, mining, and processing industries. Westermo’s positioning includes being a global leader in the rail segment. Westermo’s share of the global market for industrial network products is an estimated 4%.

Customers

Westermo currently has some 5,000 regular customers of varying size. Many of them are major multinationals, the largest being Bombardier, Toshiba and ABB. The 10 largest customers represented 28% of sales in 2016. The Nordics generated 25% of sales and the rest of Europe, 51%. The US provided 11%, Asia 10% and the rest of the world, 3%.